Japan
Continuous employment until the age of 65
Impact date: 1 April 2025 The Act on Employment Security for Older Persons obliges employers to employ their employees continuously until they reach age 65 unless there are reasonable grounds to terminate an employee’s employment contract. Currently, as a transitional measure, the law allows an employer to limit the scope of employees subject to this continuous employment system by concluding a labor-management agreement with its employees. However, this transitional measure ended on 31 March 2025, meaning that from that point onward, each employer is obligated to offer employment to all employees until they reach age 65 (unless there are reasonable grounds to terminate an employee’s employment contract).
Employer implications/action needed Employers who have concluded labor-management agreements limiting the scope of employees subject to the continuous employment system must revise their rules of employment. The revised rules should ensure that all employees are eligible for continuous employment until they reach age 65.
Employer risk Failure to comply with the new regulations may result in administrative guidance and informal counsel, and if the employer is still in violation, then a formal corrective recommendation, and if such a recommendation is not followed, then a public announcement of the employer’s non-compliance may be made.
Childcare Leave and Caregiver Leave changes
Impact date: 1 April 2025 From 1 April 2025, Japan’s short-term leave for care of sick or injured children has been expanded to employees with children under age nine, has been expanded to include leave for school events, and is available regardless of the employee’s length of service, except for employees who work two days or fewer per week. The exemption from being required to work overtime, previously limited to employees with children under the age of three, now extends to those with children under primary school age. Additionally, companies with over 300 employees are required to publicly disclose the proportion of male employees taking childcare leave, in order to promote transparency and participation.
Employer implications/action needed Employers should amend their childcare leave rules to conform to the amended law.
Employer risk Failure to comply with the new regulations may result in informal counsel, administrative guidance, or a formal corrective recommendation, and failure to comply with such a recommendation may result in public disclosure of the employer’s non-compliance.
Nursing Care Leave changes
Impact date: 1 April 2025 From 1 April 2025, employees can take nursing care leave even if they have been continuously employed for fewer than six months. The employer must take measures such as conducting training sessions and establishing a point of contact, etc., in order to promote applications for nursing care leave.
Employer implications/action needed Employers must revise their nursing care leave rules or establish a system to comply with the revised law.
Employer risk Failure to comply with the new regulations may result in informal counsel, administrative guidance, or a formal corrective recommendation, and failure to comply with such a recommendation may result in public disclosure of the employer’s non-compliance.
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